Solar Alliance Energy (SOLR) AI Stock Analysis

• Market Cap: C$7.38M
• Dividend Yield: N/A
• Average Volume (3M): 121.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: -25.00%
• EPS Growth: -10.42%
• Country: CA
• Employees: 26
• Sector: Energy
• Sector Strength: 52
• Industry: Solar
• EPS (TTM): >-0.01
• Shares Outstanding: 295,193,940
• 10 Day Avg. Volume: 65,066
• 30 Day Avg. Volume: 121,318
• PEG Ratio: 0.17
• Price to Book (P/B): -2.65
• Price to Sales (P/S): 1.35
• P/FCF Ratio: -3.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: C$0.01 ▼(-30.00% Downside)

The overall stock score is primarily driven by poor financial performance, with significant challenges in profitability and cash flow. Technical analysis indicates a lack of strong momentum, and valuation metrics are unattractive due to ongoing losses. While corporate events suggest potential future improvements, current financial instability remains a major concern.

Positive Factors

Gross Profit Margin Improvement

An improved gross profit margin indicates better cost management and efficiency, which can enhance long-term profitability if sustained.

Innovative Technology

Leveraging innovative technology positions the company well in the renewable energy sector, potentially driving future growth and competitive advantage.

Government Incentives

Access to government incentives can enhance profitability and support expansion, providing a structural advantage in the renewable energy market.

Negative Factors

Negative Equity

Negative equity indicates financial instability and potential solvency issues, which can limit growth and investment opportunities.

Cash Flow Issues

Negative cash flows highlight liquidity concerns and inefficiencies in cash generation, potentially hindering operational and strategic flexibility.

Revenue Decline

A declining revenue trend raises concerns about market competitiveness and demand, impacting long-term growth prospects.

Solar Alliance Energy Business Overview & Revenue Model

Company Description

Solar Alliance Energy Inc., together with its subsidiaries, provides energy solutions. The company primarily focuses on development, engineering, procurement, and construction of commercial and industrial solar projects, and residential solar installations in Tennessee, Kentucky, Illinois, and North/South Carolina. It also offers electric vehicle charger installation services; and backup generator, home inspection, commercial generator, renewable radar, utility scale power, commercial electric vehicle charging, and data centers solutions. The company was formerly known as Finavera Solar Energy, Inc. and changed its name to Solar Alliance Energy Inc. in January 2016. Solar Alliance Energy Inc. was founded in 2003 and is based in Toronto, Canada.

How the Company Makes Money

Solar Alliance Energy generates revenue through several key streams. Primarily, the company earns income from the sale and installation of solar energy systems, which includes both equipment and labor costs. Additionally, SOLR may benefit from long-term service contracts for system maintenance and monitoring. The company also explores revenue opportunities through partnerships with financial institutions that offer solar financing options to customers, enabling broader access to solar technology. Furthermore, Solar Alliance may leverage government incentives, tax credits, and rebates for renewable energy projects, which can enhance profitability. Collaborations with other energy companies or stakeholders that promote solar energy can also contribute to its revenue growth.

Solar Alliance Energy Financial Statement Overview

Summary

Solar Alliance Energy is facing significant financial challenges. Despite some improvements in gross profit margin, the company struggles with profitability, cash flow generation, and has high liabilities with negative equity, raising concerns about financial sustainability.

Income Statement

Solar Alliance Energy shows a volatile revenue trajectory with a decline from 2023 to 2024 after a growth period. The gross profit margin improved to 28.87% in 2024, but negative EBIT and net profit margins indicate consistent losses. The company faces challenges in achieving profitability, which impacts its overall income statement performance.

Balance Sheet

The company's balance sheet reveals significant financial instability, characterized by negative stockholders' equity and high liabilities relative to assets. The debt-to-equity ratio is negative due to negative equity, signaling potential solvency issues. Return on equity is also negative, reflecting ongoing losses.

Cash Flow

Cash flow analysis indicates a troubling cash management situation with negative operating and free cash flows in 2024. The free cash flow to net income and operating cash flow to net income ratios are not favorable, suggesting inefficiencies in converting revenue into cash. The negative cash flow growth further highlights liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.47M	5.45M	7.47M	4.83M	3.67M	3.50M
Gross Profit	677.26K	1.57M	1.07M	454.29K	663.58K	914.10K
EBITDA	-1.50M	-620.11K	-1.77M	-2.66M	-372.57K	-1.16M
Net Income	-1.57M	-684.13K	-1.81M	-2.75M	-448.86K	-1.37M
Balance Sheet
Total Assets	866.77K	995.54K	1.80M	3.70M	3.06M	581.28K
Cash, Cash Equivalents and Short-Term Investments	31.36K	9.70K	702.99K	650.06K	2.17M	1.88K
Total Debt	400.54K	227.62K	137.50K	1.56M	0.00	911.81K
Total Liabilities	5.13M	3.78M	4.11M	5.14M	2.15M	6.33M
Stockholders Equity	-4.27M	-2.79M	-2.30M	-1.44M	904.30K	-5.75M
Cash Flow
Free Cash Flow	-134.91K	-1.85M	-384.77K	-2.17M	-3.81M	-379.82K
Operating Cash Flow	-114.41K	-1.83M	-374.01K	-1.48M	-3.64M	-379.82K
Investing Cash Flow	-20.49K	-20.49K	83.10K	-688.73K	-178.07K	0.00
Financing Cash Flow	157.92K	845.00K	-127.50K	653.75K	5.98M	336.07K

Solar Alliance Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SOLR, the sentiment is Negative. The current price of 0.02 is equal to the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SOLR.

Solar Alliance Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BES	48 Neutral	C$7.44M	―	―	―	-3.93%	-27.37%
CBLU	41 Neutral	C$3.93M	-0.29	―	―	-14.00%	53.44%
SOLR	40 Underperform	C$7.38M	―	―	―	-25.00%	-10.42%
ACU	40 Underperform	C$1.00M	-0.62	-95.04%	―	-63.67%	-422.58%

Solar Alliance Energy Corporate Events

Solar Alliance Energy Reports Q3 Losses Amid Industry Challenges, Eyes Future Growth

Solar Alliance Energy Inc. reported disappointing financial results for Q3 2025, with significant declines in revenue and increased operating losses compared to the previous year. The company faced challenges due to a difficult solar industry environment, resulting in reduced activity and revenues. However, recent clarifications on ITC tax credits have improved market sentiment, and the company is seeing increased interest in new projects, which could enhance its financial standing and revenue generation in the near future.

Solar Alliance Energy Announces Leadership Changes

Solar Alliance Energy Inc. has appointed Jawad Chughtai, its Chief Financial Officer, as the new Corporate Secretary following the resignations of Monique Hutchins and Anton Shihoff from their respective roles. This leadership change is part of Solar Alliance’s ongoing efforts to strengthen its management team as it continues to focus on expanding its market presence in the solar energy sector.